Inflation and Kevin Warsh take center stage at the Fed’s interest rate meeting

The Federal Reserve on Wednesday kept interest rates unchanged at chairman Kevin Warsh’s first rate setting meeting as the central bank’s leader.

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“Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East,” the Fed said in a statement.

The committee also said “job gains have kept pace with the workforce,” a sign of stability to policymakers.

Oil prices remain higher by 30% since the start of the year.

Wholesale business inflation surpassed 6% in May and overall consumer inflation rose above 4%, both a result of the Iran war energy shock that continues to ripple through the U.S. economy.

The vote on rates was unanimous, a contrast from the prior meeting at which there were four dissents for various reasons.

The central bank’s policymakers also released updated economic projections for the next few years. The last time they did so during the early days of the Iran war, when the shifting economic picture was far less clear.